Avnet will dish out about US$252 million in an all cash merger deal to acquire Bell Microproducts (Nasdaq: BELM), a storage-centric distributor. In total, Avnet will be responsible for US$594 million as they will assume a net debt position for Bell to the tune of $342 million.
This all cash merger will follow regulatory approvals and is expected to close shortly.
Following the close, Bell Micro’s operation will be integrated into Avnet’s global operatings groups. Bell Micro’s data centre products business and its embedded systems will be integrated into Avnet’s offerings in hopes of boosting cross-selling opportunities.
Not all Bell Micro operations will be integrated, however, CDN has learned that Bell Micro’s single-tier business will be left alone. Rick Hamada, Avnet COO, said in a statement that he will be responsible for this business, while the company considers its options for this business.
This deal will also further enhance Avnet’s technical expertise, while expanding its line card.